THE BOURSE WHISPERER: Orinoco Gold (ASX: OGX) provided the market with an update on operations at the company’s 70 per cent-owned Cascavel gold mine in central Brazil.
Orinoco said plant commissioning at Cascavel is nearing completion as the ramp-up of commercial gold production moves closer.
The company declared the commissioning of the Cascavel processing circuit to be progressing on schedule with completion expected by the end of August, at which point it anticipates moving into the production ramp-up phase.
The comminution circuit and the gravity circuit have reportedly been operating well and are now consistently performing above the targeted 85 per cent availability level.
The tailings circuit has been the subject of most adjustments during the commissioning process and, following the latest alterations performed over the last few days, is now also expected to consistently meet or exceed targeted availability.
Orinoco’s current focus is on mine development of, and production from, the higher grade Central and Southern portions of the mine.
Stopes in the South are currently being mined to provide production ore to the plant.
A previously announced mine definition drilling program is also underway, which Orinoco expects will provide information to assist with mine planning and development.
“The Cascavel site is currently a hive of activity with our development, mining and operations teams now in the full swing of operations,” Orinoco Gold managing director Mark Papendieck said in the company’s announcement to the Australian Securities Exchange.
“Our focus over the last two months has been on getting the Cascavel processing circuit through commissioning and ready to start processing production material – and by the end of this month we will be in exactly that position.
“Our mining and plant teams have done a great job to get to this point so quickly, and the next important milestone will be to process the first batch of production ore, which should occur next week.
“That will provide invaluable grade reconciliation information which will assist our mine planning team.
“We look forward to providing further updates as this occurs and as we begin the main production ramp-up from early September onwards.
“All going well with the ramp-up, we anticipate being in a position to declare commercial gold production during the December quarter.”